If the auditor believes that there is a remote probability that resolution of an uncertainty will have a material effect on the financial statements, which of the following would the auditor issue?
a. A disclaimer of opinion.
b. A standard unqualified opinion.
c. An adverse opinion.
d. An unqualified opinion with explanatory paragraphs.
b
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Internal controls that the auditor expects to rely on to reduce substantive testing must be tested
a. True b. False Indicate whether the statement is true or false
A nonprofit board hired a consultant to help the directors identify new ways to improve organizational performance. According to Chait, the board is operating in what type of mode?
A. strategic B. fiduciary C. evaluation D. generative
If your receiver might overlook the bad news, it is appropriate to use the direct strategy
Indicate whether the statement is true or false
Which of the following is an example of a noncash item reported in the income statement of a firm?
A. Taxes B. Dividends C. Interest D. Depreciation E. Net sales